(Bloomberg) — Oil prices fell for the fourth time in five sessions as traders monitored U.S.-led efforts to broker a ceasefire in the 10-month-old conflict between Israel and Iran-backed Hamas in the Gaza Strip.
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Brent fell to $79 a barrel after losing nearly 2 percent on Friday, while West Texas Intermediate was at $76. While Israel had initially expressed cautious optimism about the prospect of a pause in fighting – which could defuse tensions in the key crude-producing region – new disagreements are emerging. Talks are due to resume in Cairo later this week.
The recent decline in the crude oil market comes with further signs of weakness in China, the largest oil importer. Economic growth has slowed and progress towards clean energy targets has hurt demand for some products.
Crude oil prices remain slightly higher this year, helped by OPEC+ production cuts and expectations that the Federal Reserve may soon cut borrowing costs – a potential support for energy demand. This week, investors will be watching for clues about the future course of U.S. monetary policy when Fed Chair Jerome Powell speaks at the annual meeting of central bankers in Jackson Hole, Wyoming.
Elsewhere, production at Libya’s Waha oil field has returned to normal levels of about 300,000 barrels a day after pipeline maintenance work was completed earlier than expected, people familiar with the situation say. But the country’s Sharara field remains offline.
The timescales suggest less tight, tight short-term conditions. While the gap between the two closest Brent contracts remains in a bullish, backward structure at 81 cents a barrel, that’s down from more than $1 a month ago.
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